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PA DOI: Lenders Should Accept Private Flood

Pennsylvania Insurance Commissioner Teresa Miller is urging federal regulators to amend their proposed regulations governing federally-backed loans for homes in Special Flood Hazard Areas to direct mortgage lenders to also accept residential flood policies written by what are called surplus lines insurers...
January 18, 2017

Pennsylvania Insurance Commissioner Teresa Miller is urging federal regulators to amend their proposed regulations governing federally-backed loans for homes in Special Flood Hazard Areas (SFHAs) to direct mortgage lenders to also accept residential flood policies written by what are called surplus lines insurers.  This would help homeowners have more options and potentially reap substantial savings, while protecting their homes.

Commissioner Miller sent a letter​ to federal financial regulators who have proposed regulations governing which private market flood insurance policies lenders making federally-backed mortgage loans must accept.  Homes in SFHAs with federally backed mortgages are required to have flood coverage, which is not included in standard homeowners’ insurance policies.

“Many homeowners re-mapped into SFHAs have rarely or never experienced flooding, but are now required to have flood insurance.  I want these consumers to have the opportunity to consider private market plans, offered through both Pennsylvania licensed and surplus lines insurers, and possibly reap significant savings,” Miller said.

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